Financial statement information from the balance sheet and a list of additional data is provided below for Walnut Creek Saddlery and Western Wear.

December 31

2019 2020

Cash........................................................ $42,000 $60,000

Accounts receivable (net)........................ 45,400 32,200

Inventory.................................................. 85,700 87,920

Land......................................................... 45,000 --

Equipment............................................... 103,000 85,600

Accumulated depreciation....................... ( 41,600) ( 40,200)

TOTAL..................................... $279,500 $225,520

Accounts payable.................................... $26,560 $ 11,810

Notes payable - long-term....................... 60,000 10,000

Common stock......................................... 90,000 150,000

Retained earnings................................... 102,940 53,710

TOTAL......................................... $279,500 $225,520

Additional data for 2020:

1. The company reported a net loss of $45,730.

2. Land was sold for a profit of $30,700.

3. Dividends of $3,500 were declared and paid.

4. Equipment costing $17,400 with accumulated depreciation of $11,400 was sold for $5,000 cash.

5. The long-term note was paid down with funds from selling additional common stock.

Instructions:

Prepare a statement of cash flows using the “indirect method” for the year ending December 31, 2020. Be sure to prepare the statement with proper format and correct account heading and date.